Harley Davidson business project

  • Created by: eva-marie
  • Created on: 09-09-18 15:56

SLIDE 1 BUSINESS STRUCTURE

- harley davidson is an american motorcyle manufacturer founded in milwaukee on the 1900's 

- it is a public comany that was created by two men: william harey and arthur davidson.

- There are now 10 directors and 7 leaders plus the CEO who is matthew s. levatich 

- the original purpose of the business was to provide motorcycles for ww1 they manufactured 1500 for the military 

Harley have 5 objectives to complete before 2027 these consist of :

GROWTH - build 2 milllion riders in the US

GROWTH - grow international business to 50% of annual volume 

INNOVATION - launch 100 new high impact h-d motorcycles 

FINANCIAL - deliver superior return on invested capital

ENVIRONMENTAL - grow the business wihtout growing environmental impact

1 of 14

slide 2 market position

this company is part of the recreational vehicles industry 

it is the largest market shreholder of motorcycles over 750cc in the US with 57% of the market

harley davidson competes with other well known brands such as bmw yamaha suzuki and honda

bmw

- in the same niche market 

-hold majority of the europian market share 

-police departments NOW INVEST IN BMW INSTEAD OF HARLEY AS THEY ARE CHEAPER AND PERFORM BETTER resulting in harley to loose a large percentage of there sales 

suzuki and honda

- are smaller threats as they do not specialise n the same products as harley 

Yamaha

-COMPETED WITH HARLEY IN THE SUPPLY OF AUTOMOTIVE PARTS FOR THE MOTORCYCLE INDUSTRY 

COMPETES WITH HARLEY THROUGH THE SALE OF YAMAHA'S DIVISION STAR MOTORCYCLES - THEY PROVIDE UP TO 8 DIFFERENT CRUISER BIKES 

2 of 14

slide 3 public image

to own a harley davidson is a lifestyle it is not just a possession 

harley's can have a negative  link to villainous characters that are violent and dressed in leather with tattoos.

Harley has a reputation for being a very high maintenance bike 

there was a 70's joke that said if your going to buy a harley you had better buy two - a second for spare parts

social groups image - harley owners group also known as hog 

-this group can lead to brand loyalty as frindships will be made and kept in the harley name

-it also promotes a lifestyle and the brand through offering merchandise to participants 

-members of these groups usually spend 30% more than other owners meaning that they are important sources of income

3 of 14

4 product

harley have 8 product lines with 32 models overall 

they also have accessries for motorbikes along with merchandise such as clothing

pestle analysis :

POLITICAL/ LEGAL-AGE RESTRICTION ON RIDERS 

ECONOMIC -RISING FUEL PRICES 

SOCIAL -LITTLE TO NO SWITCH COSTS FOR BUYERS  (switch costs are the fixed costs incurred when changing suppliers)

TECHNOLOGICAL/ ENVIRONMENTAL -ENVIRONMENTAL CONCERNS FOR BUYERS COULD BRING NEW RIDERS 

SWOT analysis:

strengths : innovative and they have strong brand loyalty 

weaknesses : expensive and dependant on the us market 

opportunities :  expansion abroad 

threats:  competative landscape external changes such as export taxes 

4 of 14

5 location

THE COMPANY WAS MAINLY BASED IN THE US  CONTAINING 86% OF DEALERS THERE

HOWEVER RECENT TAXES HAS CHANGED THIS 

HARLEY DAVIDSON ARE CLASHING WITH THE PRESIDENT DONALD TRUMP 

Harley stands to lose as much as $100 million a year from new European Union taxes on motorcycles that it would ship from the United States. 

The EU raised its 6% tariff to 31% in response to the Trump administration's tariffs on steel and aluminum imports from Europe.

'H-D claims that it has to move production abroad as it is its "only sustainable option" in the wake of the growing trade war.'

5 of 14

6 CUSTOMERS

HARLEY DAVIDSON CUSTOMER ARE ON AVERAGE AGED BETWEEN 37 AND 47 YEARS OLD

HOWEVER H-D ARE ON A QUEST TO REACH OUT TO MORE FEMALE RIDERS AS WELL AS RIDERS OF A YOUNGER GENERATION

FEMALE RIDERS 

'In a 2013 Mintel market report, of the 299 female motorcycle owners surveyed, 33 percent reported owning a Harley-Davidson motorcycle'

TARGET AUDIENCE FOR FEMALES : 

18 - 24 INDEPENDANT BOLD AND FEMENINE

HOUSEHOLD INCOME: FAIRLY WELL OFF 

LIFESTYLE: ACTIVE SPONTANEOUS AND FREE

HARLEY DAVIDSON SEE THEIR PRODUCT AS AN OPPORTUNITY FOR WOMEN TO EMPOWER THEMSELVES 

YOUNGER GENERATION - HARLEY DAVIDSON ARE PLANNING TO BRING OUT A NEW ELECTRONIC BIKE

THIS WILL BE AN OPTION FOR YOUNGER RIDERS AS IT IS EASIER TO USE AS WELL AS MODERN AND FUTURISTIC

6 of 14

7 HAS THE ORGANISATION CHANGED

KEY DATES FOR HARLEY DAVIDSON 

1903- started up in a shed sold 3 bikes 

1904- sold 8 bikes

1908 - factory was made - GROWTH OPPORTUNITY 

1912- HD had over 200 dealerships across the us and began distributing overseas in japan

today - OVER 1550 licensed dealers worldwide

(EVA REFER TO TABLES NOW)

 Harley Davidson's units sold are decreasing since the 2008 recession 

Here we can see that the demand for H-D mimics the immigration adjusted birth index.

7 of 14

7 HAS THE ORGANISATION CHANGED

KEY DATES FOR HARLEY DAVIDSON 

1903- started up in a shed sold 3 bikes 

1904- sold 8 bikes

1908 - factory was made - GROWTH OPPORTUNITY 

1912- HD had over 200 dealerships across the us and began distributing overseas in japan

today - OVER 1550 licensed dealers worldwide

(EVA REFER TO TABLES NOW)

 Harley Davidson's units sold are decreasing since the 2008 recession 

Here we can see that the demand for H-D mimics the immigration adjusted birth index.

8 of 14

8 WHAT MAKES THE ORGANISATION SUCCESSFUL

BRAND IMAGE  FREEDOM - GO WHEREVER YOU WANT TO, WHENEVER YOU WANT TO 

AUTHENTICITY - NOTED FOR THE TRADITION OF HEAVY CUSTOMISATION, OLDEST AND QUALITY 

COMMUNITY BUILDING - HARLEY  OWNER GROUP HAS 1.4 MILLION  MEMBERS 

RITUALS - COMMUNITY FESTIVALS AND MONTHLY OR ANNUAL RIDES 

MASCULINITY - UNIQUE SOUND OF THE EXHAUST, ASSOCIATION WITH ICONS  IN FILMS 

TOUGHNESS - RUGGED HEAVY DESIGN AND LOOK OF THE BIKES 

MERCHANDISE 

JACKETS HATS SAFETY GEAR BIKE CUSTOMIZATION -ALL OUR COMMONLY BOUGHT FOLLOWING THE PURCHASE OF A BIKE

FAMILY DYNAMICS 

CREATES A FAMILY AND SPENDS MAJORITY OF MARKETING MONEY ON RIDES WITH EVERYONE CREATING AN EXPERIENCE FOR HARLEY RIDERS ONLY 

SLOGANS : - 'ITS NOT JUST THE DESTINATION, IT THE JOURNEY ' - UNTIL YOU'VE BEEN ON A H-D, YOU HAVENT BEEN ON A MOTORCYCLE'

9 of 14

9 MISTAKES

-2008 RECESSION  - Harley-Davidson's stock price has plunged nearly 70%, to $11.96 a share in mid-February, from $37.34 a share the year before - Overall motorbike sales fell 7.2%. 'Harley-Davidson, Inc. (NYSE:HOG) reported decreased revenue, net income and diluted earnings per share for the second quarter of 2009 compared to the year-ago period.'

- AGING DEMOGRAPHICHARLEY DAVIDSON HAS ADOPTED AN IMAGE OF  MIDDLE AGE MEN GOING THROUGH A MID LIFE CRISIS  - HOWEVER HARLEY DAVIDSON IS TRYING TO CHANGE THIS DEMOGRAPHIC  BY REACHING OUT TO WOMEN AND YOUNGER GENERATIONS 

-1950'  JAPANESE MANUFACTURER IN US  - JAPANESE MANUFACTURERS ENTERED THE MARKET

THIS RESULTED IN H-D BECOMING A 'NICHE' PLAYER IN THE INDUSTRY INSTEAD OF MARKET SHARE LEADER 

AS A RESULT THEY WENT PUBLIC AND WHERE AQUIRED BY AMF 

RESULTED IN FIRMS DOWNFALL 

QUALITY DECREASED DUE TO COMPANY TRYING TO KEEP UP WITH MARKET LEADERS

HOW DID THEY FIX IT?

IN 1980'S THE FIRM WAS BOUGHT BACK.    CREATED THE PRODUCTIVITY TRADE:- EMPLOYEE INVOLVEMNT- JIT INVENTORY PRACTICES- STATISTICAL OPERATOR CONTROL

DIFFERENTIATION: STARTED TO SUPPORT ENTHUSIAST GROUPS SUCH AS HARLEY OWNERSHIP GROUPS   -REVENUES GREW TO 5 BILLION IN 2004

10 of 14

9 .1 MISTAKES

COMPETITORS 

HIGHLY SATURATED MARKET WITH CHEAPER ALTERNATIVES 

DEPENDANT ON US MARKET 

85% OF DEALERS LOCATED IN US

TRUMP STEEL PRICES AND EU TARRIFF

OVER EXTENSION STRATEGY 

BEERS BARS TOILETRIES 

THESE PRODUCTS WHERE UNSUCCESSFUL IN THE MARKET.

11 of 14

10 FINANCIAL POSITION

COMPARING 2016 - 2017 

(REFER TO TABLE) 

EVERY SINGLE ONE IS A NEGATIVE

12 of 14

11. STAKEHOLDER

CUSTOMERS 

FOCUS: ENSURING THAT THESE STAKEHOLDER'S INTERESTS AND EXPECTATIONS ON QUALITY, DESIGN, AND CRAFTSMANSHIP ARE MET.    -- THESE SHAREHOLDERS DETERMINE H-D'S REVENUES AND PROFITABILITY 

COMMUNITIES 

CONTRIBUTION TO  COMMUNITY DEVELOPMENT  -- AFFECT COMPANIES  REPUTATION AND BRAND IMAGE

HD WORKS WITH ORGANIZATIONS TO IMPROVE EDUCATION AND HEALTH

ENVIRONMENTALISTS  -- the h-d foundation gives financial support to charitable organizations that have environmental conservation programs.

SUPPLIERS  -- Influence the company's production capacity and corporate social responsibility programs 

Determines the availability of materials that the company uses to manufacture motorcycles 

EMPLOYEES 

Significant stakeholders because they influence output quality and capacity 

Interests include fair treatment and career opportunity 

13 of 14

12. ADVICE FOR THE FUTURE

MARKET AND POSITION PRODUCTS TO THE RIGT MARKET SEGMENT 

MULTIGENERATIONAL + MULTICULTURAL MARKETING STRATEGY TO INCLUDE YOUNG ADULTS AND WOMEN

ADVERTISE TOURING AND MUSEUMS MORE 

TO SHOW CASE THE RICH HISTORY

DEVELOP TECHNOLOGY TO INCREASE AUTOMATION 

CHEAPER LABOUR 

EFFICIENT CUSTOMISATION 

AIM TO INCREASE THEIR MARKET SHARE INTERNATIONALLY 

EXPAND THE CURRENT GLOBAL PRESENCE + REACH NEW INTERNATIONAL MARKETS 

14 of 14

Comments

No comments have yet been made

Similar Business Studies resources:

See all Business Studies resources »See all Business case studies resources »